The size of the energy fund will reach $2 billion
Treasury and Finance Minister Berat Albayrak announced that banks were still working on establishing an energy fund to overcome the blockage in the energy sector. The size of the fund is expected to reach $2 billion, or TRY 12 billion. “We have a joint project with five banks. Three banks agreed to
fund the project. Now, if the other two banks approve, we plan to set up a joint fund. And we want to start as soon as possible,” Garanti Bank Executive Vice President, Ebru Dildar Edin, said.
Edin also shared figures regarding loans and non-performing loans in the energy sector. The total amount of loans the banking sector issued to the energy sector is $70 billion. $23 billion of these loans have been paid back already. $40 billion of the remaining $47 billion is in production facilities and $7 billion is in delivery facilities. Also, 60 percent of this $40 billion – $24 billion – are allocated to renewable energy projects supported by YEKDEM.
The amount of loans that need restructuring is around $12-13 billion. However, approximately $10 billion of these projects can be restructured without being included in a fund or by rescheduling. Therefore, a loan of $1.5-2 billion or approximately TRY 12 billion will be included in funds, says Edin.